ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has initiated an inquiry into the unprecedented Rs7.13 per unit additional fuel cost adjustment (FCA) proposed by distribution companies (Discos). Nepra announced its decision during a public hearing on an FCA petition filed by the Central Power Purchasing Agency (CPPA) on behalf of Discos. The aim is to extract an additional Rs57 billion from consumers for electricity consumption in January.
Nepra Chairman, Waseem Mukhtar, expressed astonishment at the substantial tariff increase request, especially considering the absence of any change in fuel prices and exchange rates. He raised concerns about the burden on consumers due to the incompetence of national grid authorities in ensuring smooth operations of the North-South transmission corridor.
Rafique A. Shaikh, Nepra’s member tariff, highlighted that a significant portion of the demand increase was due to power companies’ inability to manage the grid effectively, resulting in frequent power outages for consumers. Despite a decrease in electricity consumption, fuel costs surged, destabilizing the grid further.
Nepra emphasized the need for accountability in the power sector and vowed to investigate the matter thoroughly. The regulator challenged the authenticity of the proposed adjustments, citing discrepancies in load-shedding patterns across regions.
Mukhtar urged the Power Division to take proactive measures to address the challenges faced by the power sector, emphasizing the importance of tangible solutions to prevent further price escalation and demand issues.
Story by Khaleeq Kiani
